Dynamic explanation of the relationship between gross domestic product and Iran's total energy demand in the framework of the Kuznets curve

Document Type : Research Paper

Authors

1 Master's student of Energy Economics, Faculty of Management and Economics, Shahid Bahonar, Kerman, Iran

2 Shahid Bahonar University of Kerman

3 Associate Professor, Department of Economics, Faculty of Management and Economics, Shahid Bahonar University, Kerman, Iran

Abstract
Today, almost 80% of the world's energy is produced from fossil fuels, which significantly release environmental pollution. Since economic growth in Iran is mostly achieved through fossil fuels, a study was conducted to explain the relationship between Iran's gross domestic product and total energy demand using the framework of the EKC, this study first highlights some points about pollution and energy consumption And then it deals with the sustainable development and EKC, in the experimental model part, ARDL model is estimated as the chosen method by conducting relevant tests, and then in the second part, using dynamic systems, the model is estimated period 2000-2045. The result indicates that Iran is in the first stage of the Kuznets curve and 59% of changes in energy demand are due to changes in GDP. For this purpose, the policy recommendation that can be considered in this article is education and public awareness of the dangers of using fossil fuels and investing in renewable systems, which on the one hand leads to economic growth and leads to the transition from the first stage of the EKC.

Keywords



Articles in Press, Accepted Manuscript
Available Online from 11 May 2025

  • Receive Date 12 October 2024
  • Revise Date 06 May 2025
  • Accept Date 11 May 2025
  • First Publish Date 11 May 2025
  • Publish Date 11 May 2025